State of the water sector report 2015

The Australian Water Association and Deloitte are pleased to present the State of the Water Sector Report 2015. The Report is the only one of its kind, reporting on the trends and insights of water sector professionals about their own industry. The survey results reveal attitudes and behaviours relating to a range of topics affecting the industry. This year marks the fifth year that the survey has been run and, as such, a summary of trends across the five years has been included in this year’s report. Trends observed over the last five years operational efficiency first emerged as an issue affecting the water sector in 2013, due to growing concerns about the need to control costs and demonstrate value for money, both within the sector itself and for customers. This rose to become the primary issue and area of concern in 2014 as operational costs continued to rise and new capital investment costs were being passed on to customers. In 2015 operational efficiency remains the second biggest issue for the industry, with efficiencies still to be gained through asset management, process improvement and works management and systems improvement. Skills shortages, and talent attraction and retention were of significant concern when the survey commenced five years ago, with the issue of ageing workforces in particular seen by many as a looming threat for the industry. However, in more recent years these concerns have almost halved due to a reduction in demand for additional staff and the greater availability of skilled labour, given construction activity in the mining industry has eased. Unconventional gas came onto the industry’s radar in 2012. last year, 70% of respondents stated that they believed unconventional gas had a significant to moderate effect on the overall management of ground- or surface water. In 2015, 55% of respondents stated that produced water from unconventional gas activities can be treated to a suitable quality for irrigation and other purposes, nevertheless highlighting some concerns in relation to the oil and gas sector impact. Although climate change was identified by 86% of respondents last year as posing a significant or moderate risk to sustainable management of water, sustainability is rated as less important than in previous years, with it being ranked as one of the top issues for the sector in 2011. This may be due to broader changes in community sentiment regarding environmental issues, and more benign weather conditions. While the sector believed security of supply was being managed well, climate change, as well as population growth, is viewed as one of the greatest challenges over the next five years. from a price and regulatory perspective, satisfaction with the role of economic regulators continues to increase slowly, and an increasing proportion of respondents support regulators making deterministic decisions on prices, rather than just monitoring prices. However, a price monitoring role is still favoured by more than three times as many respondents as deterministic pricing. 2015 Key issues The price of water and water regulation Water sector professionals’ perceptions of customer beliefs Sources of water Digital technology Asset management and operational efficiency -- State based reports are also available at AWA\u27s websit